According to the PMBOK® Guide, Cost-Benefit Analysis is a primary tool and technique used during the Plan Quality Management process. It involves comparing the cost of the quality level planned to the expected benefit of meeting those quality requirements.
Creating Quality Metrics: The primary objective of performing a cost-benefit analysis in this context is to determine the most efficient quality level for the project. The results of this analysis help the project manager and team define specific, measurable Quality Metrics (such as failure rate, defect density, or availability) that are achievable and provide the most value for the investment.
The Principle of Quality: In project management, " quality " is the degree to which a set of inherent characteristics fulfills requirements. The benefit of meeting quality requirements includes less rework, higher productivity, lower costs, and increased stakeholder satisfaction. The cost-benefit analysis ensures that the " Cost of Quality " (COQ) does not exceed the benefits gained.
Relationship to Planning: By weighing the costs of prevention and appraisal against the benefits of reduced internal and external failures, the team can finalize the Quality Management Plan and its associated metrics.
Analysis of Other Options:
A. Pareto charts: These are a tool and technique used in Control Quality to identify the " vital few " sources that are responsible for causing most of a problem ' s effects (the 80/20 rule). They are an output of data analysis, not a direct creation of cost-benefit analysis.
C. change requests: While a cost-benefit analysis might be performed to justify a change request, it is not the tool used for " creating " the request itself. Change requests are formal proposals for modifications.
D. Ishikawa diagrams: Also known as Cause-and-Effect or Fishbone diagrams, these are tools used in Manage Quality and Control Quality to identify the root causes of problems. They are graphical brainstorming tools, not financial or objective-based analysis tools.
